RFL dismisses claims game is in sorry financial state

Super League clubs are on the edge of “a financial abyss” with combined debts of more than £60m, according to a sports finance specialist.

Rob Wilson, from Sheffield Hallam University, came up with the conclusion after analysing the balance sheets of 11 of the 14 Super League teams for the BBC’s Inside Out programme – information was not available from the other three clubs.

The programme will go out in Yorkshire and Lincolnshire and the north-west at 7.30pm tonight, just hours after the new Super League season is launched in Manchester. The Rugby Football League has issued a strong rebuttal, with director of standards and licensing Blake Solly insisting the game remains in “robust health.”

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Super League clubs are guaranteed an income stream in excess of £90m from the Sky television deal but the new season will start on Friday without a main sponsor and in the last six months two clubs, Bradford and Salford, have teetered on the brink of bankruptcy.

“You have three or four teams that are doing very well, three or four teams doing poorly and a group of teams that struggle to wash their face financially,” said Wilson. “The overall effect of that is that League itself will struggle for finance.

“The biggest challenge for Super League is that there are too many teams generating insufficient turnover and generating too much cumulative debt.

“And that alarms me as someone who looks at finance in an academic environment, so using a term like rugby league is staring at the financial abyss isn’t too harsh a thing to say.”

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BBC Inside Out presenter George Riley speaks to some of the sport’s leading figures to test the financial state of the game and whether there is room for optimism. Hull KR chairman Neil Hudgell issued a warning on the state of the game last year and 12 months on he sees little improvement.

He says: “Every year we make a loss and every year as directors we’ve funded that shortfall. I think it’d be very hard for us to argue otherwise that we live beyond our means.”

But in a game where the fans’ passion for their teams is legendary, loyalty is fierce and there are still success stories.

Gary Hetherington, chief executive of Super League champions Leeds said: “The majority of clubs are working hard ... it’s some of the others that have let the sport down quite frankly.”

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In a statement, Solly said: “Rugby league is about to embark on the most exciting and most important season in its history and the sport is well placed to make the most of the opportunities that lie ahead.

“Compared to every other major sport, rugby league is in robust health: attendances were at an all-time high in 2012, more people saw the game on TV than ever before and the RFL was able to make record levels of financial disbursements to clubs.

“We expect standards in Super League to continue to rise in 2013 when a more geographically diverse Championship will showcase the sport to new audiences, while the Rugby League World Cup will elevate rugby league’s profile to new heights.

“2013 will also see more commercial income flow into rugby league than at any time in its history.

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“The salary cap and licensing have both brought the stability that is allowing many clubs to operate profitably and helped attract the new investors who are coming into Super League.

“However, no amount of central legislation can guard against some of the decision-making that takes place at local level.”